Utilisation rates are tipped to hit 87% in three years time.
This chart from OCBC Investment Research (OIR) shows that demand for data centres is projected to grow at a CAGR of 9.4% from 2019-2022, from approximately 39.5MW in 2018 to 56.5MW in 2022.
Heated demand for data facilities is expected to outpace the supply that is set to come online from 2019-2022, which will grow at a CAGR of 2.1% to 53MW. OIR cited a study by Cushman & Wakefield which states that Singapore has 278MW of data centre capacity under construction in 2018, which is expected to double in the next three years.
Global players such as Equinix, Digital Realty and Iron Mountain have established data centres in Singapore. Google also announced the construction of its third data centre to be completed in mid-2020 and Facebook’s recently announced mega 150MW data centre that will cost around $1.4b to develop.
OIR noted that Singapore is an attractive location for data centres because of its fast connectivity, stable business environment and talent.
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